The American Jobs Creation Act of 2004 enacted Code Sec. 409A, which requires the current inclusion in income of deferred compensation that does not meet the new, more stringent requirements of Code Sec. 409A.

The new provision is effective with respect to amounts deferred after Dec. 31, 2004, and with respect to amounts deferred in tax years beginning before Jan. 1, 2005, if the plan under which the deferral is made is materially modified after Oct. 3, 2004. The provision is therefore fully in effect for 2005 deferrals.

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